Jan 19, 2022, 02:00 ET
LONDON, Jan. 19, 2022 /PRNewswire/ -- Smith+Nephew (LSE: SN, NYSE: SNN), the global medical technology business, announces the acquisition of Engage Surgical, owner of the only cementless unicompartmental (partial) knee system commercially available in the US.
This acquisition strongly supports Smith+Nephew's strategy for growth by transforming its business through innovation and acquisition, while also providing differentiation for its customers. The Engage Surgical Partial Knee System is a novel, modern cementless knee implant to serve a resurgent segment driven by the potential for better long-term fixation through biologic integration, shorter operating times, and the shift to Ambulatory Surgery Centers (ASCs).
Randy Kilburn, Executive Vice President & General Manager, Reconstruction, Robotics and Digital, said:
"Smith+Nephew is now the only medical device company offering both cemented and cementless partial knee implants in the US, as well as robotics-assistance through the CORI™ Surgical System that is well-suited for the precise alignment needed. Through our Sports Medicine franchise we have an established, strong position in ASCs where the vast majority of partial knees in the US are performed. Our VISIONAIRE™ business, the high performance and small footprint of CORI, plus our partial knee portfolio, is a unique compelling offering for customers."
The acquisition will drive Smith+Nephew's Robotics and Real Intelligence strategy. Partial knee procedures are well-matched for robotics due to the need for precise alignment and Smith+Nephew's CORI Surgical System already supports the cemented JOURNEY II™ unicompartmental knee. The Engage Surgical Partial Knee System is optimised for robotics and will have an application with CORI in the future. Engage Surgical's Partial Knee System also complements Smith+Nephew's focus on serving the growing outpatient market, with an increasing proportion of knee procedures performed in ASCs.
Dan Justin, Chief Executive Officer, Engage Surgical, said:
"The Engage Surgical Team is excited about joining Smith+Nephew to help expand the impact of the Engage Surgical Partial Knee System and integrating it with the CORI Surgical System. Smith+Nephew is well-suited and well-prepared to continue our mission of providing better outcomes for knee arthroplasty patients."
With Engage Surgical's Partial Knee System, Smith+Nephew expects to be able to drive market expansion in the US, and in time in other markets as regulatory approvals are secured. Engage Surgical's Partial Knee System currently has regulatory clearance in the US where it is in limited market release.
The partial knee market is currently worth approximately $300 million in the US (SmartTRAK) and is expected to grow faster than the total knee market and by around 4% per annum through 2029 (Millennium Research Group, Inc). Smith+Nephew expects cementless partial knees will grow ahead of overall partial knees, in line with recent patterns seen in the cementless segment.
The cost of the acquisition is up to $135 million contingent on sales performance. The acquisition was financed from existing cash and debt facilities. Engage Surgical is located in Orlando, Florida.
Smith+Nephew is a portfolio medical technology business focused on the repair, regeneration and replacement of soft and hard tissue. We exist to restore people's bodies and their self-belief by using technology to take the limits off living. We call this purpose 'Life Unlimited'. Our 18,000 employees deliver this mission every day, making a difference to patients' lives through the excellence of our product portfolio, and the invention and application of new technologies across our three global franchises of Orthopaedics, Advanced Wound Management and Sports Medicine & ENT.
Founded in Hull, UK, in 1856, we now operate in more than 100 countries, and generated annual sales of $4.6 billion in 2020. Smith+Nephew is a constituent of the FTSE100 (LSE:SN, NYSE:SNN). The terms 'Group' and 'Smith+Nephew' are used to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise.
For more information about Smith+Nephew, please visit www.smith-nephew.com and follow us on Twitter, LinkedIn, Instagram or Facebook.
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SOURCE Smith & Nephew plc
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